OECD guidelines for micro statistics on household wealth

280 Pages·2013·5.351 MB·English

by  OECD

OECD Guidelines for Micro Statistics on Household Wealth
This publication presents an internationally agreed set of guidelines for producing micro statistics on household
wealth, It addresses the common conceptual, defi nitional and practical problems that countries face in producing
such statistics, and are meant to improve the comparability of the currently available country data. The Guidelines,
prepared by an international expert group working under the auspices of the OECD, propose a set of standard
concepts, defi nitions and classifi cations for micro wealth statistics, and cover different phases in the statistical
production process, including sources and methods for measuring particular forms of wealth, best practice in using
household surveys or other sources to compile wealth statistics, the development of analytic measures,
the dissemination of data, and data quality assurance.
These Guidelines have been produced as part of the OECD Better Life Initiative, a pioneering project launched in
2011, with the objective to measure society’s progress across eleven domains of well-being, ranging from jobs,
health and housing, through to civic engagement and the environment.
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OECD Guidelines
for Micro Statistics
on Household Wealth
This work is published on the responsibility of the Secretary-General of the OECD.The
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Pleasecitethispublicationas:
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TABLEOFCONTENTS
Table of contents
Foreword................................................................... 7
Preface .................................................................... 9
Acknowledgments .......................................................... 11
Executivesummary......................................................... 13
Chapter1. Introduction ..................................................... 17
1.1.Purposeofthestandardsandguidelines ............................... 18
1.2.DevelopmentoftheGuidelines ....................................... 19
1.3.Relationshipwithexistinginternationalstandards ...................... 21
1.4.Structureofthereport............................................... 21
Chapter2. Overviewofhouseholdwealthstatistics ............................ 25
2.1.Needforinformationonhouseholdwealth............................. 26
2.2.Objectivesandusesofmicrostatisticsonhouseholdwealth.............. 30
2.3.Integrationofmicrostatisticsonhouseholdwealthwithotherstatistics ... 33
2.4.Internationaldatacollectionandmeasurementinitiatives................ 36
2.5.Summary .......................................................... 38
Chapter3. Standardconcepts,definitionsandclassificationsforhousehold
wealthstatistics.................................................. 41
3.1.Descriptionoftheconceptualframeworkformicrostatistics
onhouseholdwealth ................................................ 42
3.2.Conceptualrelationshipbetweenmicrostatisticsonhouseholdwealth,
incomeandconsumption............................................ 44
3.3.Basicconceptsanddefinitionsforhouseholdwealthstatistics ............ 46
3.4.Wealthandnetworth................................................ 54
3.5.Assetsandliabilities................................................. 55
3.6.Generalprinciplesofrecording........................................ 58
3.7.Standardcomponentsofhouseholdwealth............................. 66
3.8.Assetandliabilitygroups ............................................ 75
3.9.Householdgroups................................................... 78
3.10.Othervariablesrelatedtowealth/networth............................. 88
3.11.Consistencywithotherinternationalstatisticalstandards................ 92
Chapter4. Datasourcesandmethodsforproducinghouseholdwealthstatistics.... 97
4.1.Differenttypesofsourcesandmethods................................ 98
4.2.Strengthsandweaknessesofdifferentapproaches ...................... 98
4.3.Combinationofdifferentsources:Purposesandmethods................. 100
4.4.Summary .......................................................... 102
OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013 3
TABLEOFCONTENTS
Chapter5. Measurementguidelinesforstandardcomponentsofhouseholdwealth.. 103
5.1.Measurementunits.................................................. 104
5.2.Referencepointsandreferenceperiods ................................ 104
5.3.Valuationbasis ..................................................... 105
5.4.Non-financialassets................................................. 106
5.5.Financialassets..................................................... 113
5.6.Liabilities .......................................................... 125
5.7.Summary .......................................................... 128
Notes.................................................................. 129
Chapter6. Measuringhouseholdwealththroughsurveys....................... 131
6.1.Generalmeasurementissues ......................................... 132
6.2.Measurementissuesspecifictowealthsurveys ......................... 137
6.3.Surveydevelopmentanddatacollection ............................... 138
6.4.Summary .......................................................... 158
Notes.................................................................. 159
Chapter7. Analyticmeasures................................................ 161
7.1.Life-cycleperspectiveandanalysisbypopulationsubgroups.............. 162
7.2.Unitofanalysis..................................................... 163
7.3.Specificanalyticmeasuresandtheiruse ............................... 163
7.4.Inequalityindices................................................... 170
7.5.Adjustingforpricedifferences........................................ 174
7.6.Internationalstatisticalcomparisons .................................. 177
7.7.Summary .......................................................... 178
Notes.................................................................. 179
Chapter8. Dissemination ................................................... 181
8.1.Typesofdissemination............................................... 182
8.2.Analysis ........................................................... 182
8.3.Specificissuesconcerningthedisseminationofwealthdata.............. 185
8.4.Summary .......................................................... 189
Notes.................................................................. 190
Chapter9. Qualityassuranceforhouseholdwealthstatistics.................... 191
9.1.Qualityassuranceframeworks........................................ 192
9.2.Summary .......................................................... 202
Bibliography................................................................ 205
AnnexA. Eurosystemhouseholdfinanceandconsumptionsurvey............... 207
AnnexB. LuxembourgWealthStudy–Acaseforincreasedexantecomparability
ofdatasources..................................................... 216
AnnexC. Differencesbetweenmicroandmacromeasuresofhouseholdwealth ... 225
AnnexD. Inventoryofcountrymethodologiesforproducingmicrowealthstatistics... 229
AnnexE. Householddefinitionsinotherstatisticalstandards.................... 275
4 OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013
TABLEOFCONTENTS
Tables
2.1. Examplesoftheuseofmicrodataonhouseholdwealthinpolicymaking..... 32
3.1. Summaryofthemainfeaturesofthehouseholdconceptsanddefinitions
usedinotherstandards................................................ 48
3.2. Listofstandardcomponentsofhouseholdwealth.............................. 67
3.3. Relationshipbetweenhouseholdwealthstandardcomponentsandhousehold
incomecomponentsintheIncome,ConsumptionandWealthFramework....... 76
3.4. HouseholdwealthbyhouseholdsizeinItaly,2008 ......................... 80
3.5. Householdwealthbyhouseholdtypeandlabourforcestatusofhousehold
membersinAustralia,2009-10 ........................................... 81
3.6. FamilywealthbygeographiclocationoffamilyintheUnitedStates,2004and2007 82
3.7. Householdwealthbyhousehold’stenuretypeinAustralia,2009-10 .......... 83
3.8. CompositionoffamilywealthbynetworthquintileinCanada,2005 ......... 85
3.9. HouseholdwealthbywealthandincomeclassesintheNetherlands,2011 .... 85
3.10. HouseholdwealthmobilitybynetwealthquintileinItaly,2000-08........... 86
3.11. Householdwealthbyageandeducationofthehouseholdreferenceperson
inCanada,1999and2005............................................... 86
3.12. Examplesofattitudinalandbehaviouralquestionsinhouseholdwealthsurveys . 93
5.1. ValueofprincipalresidenceinGreatBritain,bydwellingtype,
2006-08and2008-10 ................................................... 109
7.1. Mean,medianandmeanofthemedianpersonwealth
intheUnitedStates,2007 .............................................. 164
7.2. Theeffectofequivalencescalesonthelevelsandinequality
ofhouseholdwealthintheUnitedStates,2007............................ 170
7.3. Effectofthetreatmentofoutliersonsummarymeasures
ofwealthinequalityintheUnitedStates,2007 ............................ 172
7.4. Effectoftheinclusionandexclusionofhouseholdswithzeroandnegative
wealthandoftopandbottomcodingintheUnitedStates,2007 ............. 172
7.5. Meanandmedianvaluesofthemaincomponentsofhouseholdwealth
inItaly,GermanyandtheUnitedStates .................................. 173
7.6. ShareofhouseholdsbytypeofassetsanddebtinItaly,
GermanyandUnitedStates............................................. 174
7.7. Inequalitymeasuresandtopsharesbytypeofassetsanddebt
inItaly,GermanyandtheUnitedStates .................................. 174
8.1. FamilynetworthbyselectedcharacteristicsoffamiliesintheUnitedStates ...... 183
A.1. Mainfeaturesofcountrysurveysparticipating
intheEurosystemHouseholdFinanceandConsumptionSurvey............. 209
B.1. ListofLWScomponentsofthehouseholdbalancesheet.................... 217
B.2. ListofLWSnon-wealthvariables ........................................ 220
C.1. Differencesbetweenmicroandmacrostatisticsonhouseholdwealth........ 226
C.2. Relationshipbetweenstandardcomponentsinmacroandmicro
householdwealthstatistics............................................. 227
D.1. Overview............................................................. 230
D.2. Datacollectionproperties .............................................. 234
D.3. Structure............................................................. 239
D.4. Inventory............................................................. 243
D.5. Maincharacteristicsbycountry ......................................... 244
E.1. Comparisonofhouseholdconceptsanddefinitionsinotherstandards ....... 275
OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013 5
TABLEOFCONTENTS
Figures
3.1. Broadconceptualframeworkformicrostatisticsonhouseholdwealth ....... 42
3.2. Broadconceptualframeworkformacrostatisticsonhouseholdsectorwealth,
basedonSNA2008..................................................... 43
3.3. Overviewofconceptualrelationshipbetweenmicrostatisticsonhousehold
wealth,incomeandconsumptionfromastatisticalperspective................ 45
6.1. Informationcycleforahouseholdsurvey................................. 132
6.2. Theroleofdataproducersinsamplesurveys ............................. 133
6.3. IncomeandwealthdistributionintheUnitedStates,2007 .................. 138
6.4. IncomeandwealthdistributioninItaly,2008.............................. 139
7.1. DistributionofnetworthintheUnitedStates,2007........................ 165
7.2. KerneldensityestimatesofnetworthintheUnitedStates.................. 166
7.3. CumulativedistributionfunctionforhouseholdwealthintheUnitedStates,2007 . 167
7.4. LorenzcurvesforhouseholdwealthintheUnitedStates,2007 .............. 168
7.5. Relativequantile-differenceplotfortheUnitedStates,2007................. 173
8.1. DistributionofhouseholdnetworthinAustralia,2009-10................... 186
A1. ContentsoftheHFCS .................................................. 210
A2. TheHFCSBlueprintquestionnaire....................................... 210
6 OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013
FOREWORD
Foreword
M
uchoftherecentworkondevelopingmetricstogo“beyondGDP”hasfocusedonnon-monetary
dimensions of people’s well-being, i.e.on their quality of life. However, there are also important
limitstotheavailableinformationneededtoadequatelymeasureeconomicwell-being,understood
as people’s command over resources or material living conditions. Understanding and improving
people’swell-beingrequiresimprovedevidenceinbothareasinordertobetterinformpolicy-makers
andcitizensalikeofwhere,when,andforwhomlifeisgettingbetterorworse.Thisisparticularly
important at a time when the most severe and prolonged recession in our life time still imposes a
largetollonthelivesofmanypeopleacrosstheworld.
This report, which provides guidance on the measurement of the distribution of household
wealth –together with its companion report, which proposes a framework to support the joint
analysisofhouseholdincomeconsumptionandwealthatthemicrolevel–istheresultofthework
ofanOECDexpertgroup,chairedbyBobMcCallfromtheAustralianBureauofStatistics,thatover
the period2011-12 has endeavoured to improve existing metrics for measuring people’s economic
well-being at the micro level, i.e.at the level of individuals and households.These two reports are
part of the OECD’s Better Life Initiative –a pioneering project launched in2011, which aims to
measurewell-beingandprogressbylookingatbothpeople’smaterialconditionsandqualityoflife
throughelevendimensionsrangingfromincomeandwealth,jobsandhousingtohealthconditions,
skills and social ties, from work-life balance civic engagement and personal security to
environmentalqualityandlifesatisfaction.
Householdincome,consumptionandwealtharethethreeconstituentsofhouseholdeconomic
well-being.Attheaggregatelevel,theSystemofNationalAccounts(SNA)providesinternational
standards for computing total amounts of these different components of household economic
resources,andfordetailingthelinksbetweenthem.However,theSNAreferstothehouseholdsector
asawhole,anddoesnotprovideinformationonthedistributionofthedifferenttypesofresources
among households with different characteristics. In addition, the goal of the SNA to provide a
consistent description of the full range of relations within the economic system implies that the
measurement of the various flows and stocks pertaining to the household sector may sometimes
departsfromhouseholds’ownperceptionsoftheireconomicsituation.
At the microeconomic level, survey and administrative-based measures of household income
constitutewellestablishedmetricsforassessingthedistributionofhouseholdeconomicwell-being.
Internationalstatisticalstandardsformeasuringhouseholdincomeexist(i.e.the2011editionofthe
CanberraGroupHandbookonHouseholdIncomeStatistics),andmostcountrieshaveputin
placedatacollectionsinthisfield.Buthouseholdincomeisonlyonedimensionofhouseholdeconomic
well-being.Bothincomeandwealthdeterminepeople’sconsumptionpossibilities,whilelowlevelsof
either may not always imply a low level of consumption. This underscores the importance of
providingguidancetobothdataproducersandusersonhowtocompileandanalysemicro-leveldata
onthedistributiononhouseholdlevel,andareawherenostatisticalstandardscurrentlyexist.
OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013 7
FOREWORD
Theimportanceofmicroleveldataonhouseholdwealthisbestillustratedbytheexperienceof
several advanced economies in the period that preceded the 2008financial crisis. While many
observers,includingtheOECD,haddrawnattentiontothesignificantriseinincomeinequalitiesthat
had occurred since the mid-1990s, controversies surrounded the interpretation of these trends,
i.e.whether they reflected permanent factors or rather an increased volatility of income flows,
particularlyatthelowerendoftheincomescale.Someobserversarguedthathigherinequalitiesin
the distribution of household income was not matched by similar changes in the distribution of
household consumption, interpreting this as evidence that household permanent income was not
becoming more unequal. We know now that many households, including low and middle income
ones,wereaccumulatingunsustainablelevelsofdebt,encouragedbyhigherhousepricesandeasier
access to credit. Better information on the doistribution of household assets and liabilities would,
arguably,haveallowedassessingthesizeoftheimbalancesthatwereaccumulating,puttingpolicy
makersinamuchbetterpositiontoanticipateandreact.
This report, and the companion report presenting a framework for the joint analysis of
householdincomeconsumptionandwealthatthemicrolevelfill,animportantgapintheexisting
statisticalguidanceattheinternationallevel.Theybenefittedfromvaluableinputsfromexpertswho
actively participated in the OECD Expert Group, comments provided by members of the OECD
CommitteeonStatistics,andcontributionsfromthoseinstitutions(thenationalstatisticalofficesof
AustraliaandSwitzerland,theBankofItaly)thatsupportedthisworkthroughtheirfinancialand
in-kind contributions. Ihope that these two reports will encourage more countries to undertake
systematicdatacollectionsinthisfield,andtofavouraprogresssiveconvergenceinmeasurement
approachesandclassificationsacrosscountries.
Asforotherareasofstatistics,thereisstillmuchtobelearned,andthisreportsetsoutwhat
wecurrentlyknowaboutgoodpractice.Asourknowledgegrows,thisgoodpracticewillneedtobe
revisedinthelightoftheexperiencegained.Myhopeisthat,asinthecaseofstatisticspertainingto
otherdimensionsofpeople’swell-being,theguidanceprovidedinthisreportwillevolveovertimein
thedirectionofafull-fledgedinternationalstatisticalstandard.
MartineDurand
OECDChiefStatistician,
DirectoroftheOECDStatisticsDirectorate
8 OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013
PREFACE
Preface
T
hese Guidelines for Micro Statistics on Household Wealth presents, for the first time, an
internationallyagreedsetofguidelinesforproducingmicrostatisticsonhouseholdwealth.
Theyfillanimportantgapintheexistinginternationalguidanceonmeasuringthevarious
dimensions of people’s economic well-being. They address the common conceptual,
definitionalandpracticalproblemsthatcountriesfaceinproducingsuchstatistics,andare
meant to improve the comparability of the currently available country data.They are also
needed to facilitate the integration of micro statistics on household wealth with those
relatingtotheotherdimensionsofeconomicwell-being,i.e.incomeandconsumption.
The micro perspective on wealth statistics presented here complements the broad
economy/production perspective on the macro statistics articulated in the System of
National Accounts (SNA), and many of the concepts are the same.There are, however,
some differences.These guidelines for micro data support the distributional analysis of
economicwell-being,andthereforeincludeconsumerdurablesasassetsyieldingservices
to their own households.These assets are particularly important in the analysis of the
wealth of poorer households and for distributional information. On the other hand, the
microguidelinesdonotincludesomeoftheconceptsincludedinthemacrodatathatare
of less relevance to a household perspective. The relationship between these Wealth
GuidelinesandtheSNAisdescribedindetailinthisreport,sothatdatapreparedunderthe
twoframeworkscanbeanalysedtogetherinameaningfulway.
TheWealthGuidelinesweredevelopedundertheauspicesoftheOECDCommitteeof
Statistics(CSTAT).TheworkwascarriedoutbytheOECDExpertGrouponMicroStatistics
onHouseholdIncome,ConsumptionandWealth,whosemembersweredrawnfromawide
rangeofcountriesandthatIhadthehonour(andpleasure)ofchairing.TheExpertGroup
undertooktwocomplementarytasksatthesametime.Thefirstwasthepreparationofthe
guidelines presented in this report; the second was the preparation of the companion
report,FrameworkforStatisticsontheDistributionofHouseholdIncome,ConsumptionandWealth
(OECD, 2013), which presents the first internationally agreed comprehensive and
integratedframeworkforthecollection,analysisanddisseminationofmicrostatisticson
thedifferentaspectsofhouseholdeconomicwell-being.TheWealthGuidelinespresented
here are fully consistent with the Framework publication. Concurrently, the OECD Expert
Group to Measure Disparities in a NationalAccounts Framework was also established in
ordertoconsiderhowexistingmicrodatacouldbeusedtoproducemeasuresofdisparities
betweengroupsofhouseholdsthatareconsistentwithSNAconceptsandSNAaveragesfor
the household sector.The outputs of this second Expert Group are being released as a
streamofOECDWorkingPapers.
DraftsofthetworeportsbytheOECDExpertGrouponMicroStatisticsonHousehold
Income, Consumption and Wealth were submitted to CSTAT for comments under the
OECDGUIDELINESFORMICROSTATISTICSONHOUSEHOLDWEALTH©OECD2013 9